Gce Model Questions Vol1 2019 Commerce Question 7
Practice objective / multiple choice question 7 from the 2019 Gce Model Questions Vol1 Commerce examination.
A logistics company transports goods by road. The fixed cost per trip is \(50{,}000\) ₦ and the variable cost is \(120\) ₦ per tonne‑km. The company charges a freight rate of \(200\) ₦ per tonne‑km for the first 500 km and \(180\) ₦ per tonne‑km for any distance beyond 500 km. A client wants to ship 30 tonnes over 800 km. Determine whether the company makes a profit on this contract and, if so, calculate the profit amount.
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About This Question
This is Gce Model Questions Vol1 2019 Commerce Question 7. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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